The Strategic Banking Corporation of Ireland (SBCI) has launched a new source of funding for Irish SMEs with a €17.5m Hire Purchase and Leasing programme through regional lender SME Finance & Leasing Solutions DAC, headquartered in Kilkenny but offering finance throughout Ireland.
The company will use lower cost SBCI funding to offer finance from €1,000 to €70,000 across the micro-SME market (typically sole traders or businesses employing up to 10 people). Crucially, this funding will be available at substantial discounts to typical rates for these products and borrowers will not be required to provide personal guarantees.
SME Finance & Leasing aims to enhance access for micro-SMEs to Hire Purchase and leasing, giving them a competitive new option for financing equipment, machinery and vehicles and making it easier for them to borrow.
The new leasing and hire purchase products will be available immediately, with further details at www.sbci.gov.ie and www.smeleasing.ie.
SME Finance & Leasing becomes the 11th lender to partner with the SBCI in providing low-cost funding to SMEs, with circa 30,000 SMEs benefiting from over €1.4 billion in lower cost funding drawn down through SBCI-backed initiatives to date.
It is the 7th non-bank lender to team up with the SBCI, as part of the SBCI’s efforts to enhance competition in the SME funding market by supporting a combination of banks and non-banks, as well as a mix of long-established institutions and newer entrants to the market.
Speaking about the announcement, Paschal Donohoe TD, Minister for Finance and Public Expenditure & Reform said:
“I welcome this announcement from the Strategic Banking Corporation of Ireland of a new €17.5m hire purchase and leasing fund through SME Financing and Leasing Solutions. Giving SMEs, and in particular micro-SMEs, access to a broader range of credit supports will be vital in supporting their recovery from the current crisis. It is noteworthy that the SBCI is now working with SME Financing and Leasing Solutions as a new lending partner, broadening the distribution of credit support, and supporting SMEs, both now and into the recovery period.”
Nick Ashmore, Chief Executive at SBCI, said:
“This is an exceptionally difficult time for all businesses, and we want to lower financing costs for all SMEs, from sole traders to businesses employing hundreds of people.
Today’s announcement is a great new option for micro-SMEs that underlines our commitment to increasing choice for SMEs and increasing competition in the SME financing market by supporting new entrants to that market. We plan to add more on-lending partners and give SMEs better access to lower cost funding to help them address the enormous challenges they are facing.”
Eugene O'Donovan, Chief Executive at SME Finance & Leasing, said:
“This new €17.5 million facility with the SBCI will allow SME Finance & Leasing deliver much needed funds to the SME sector in Ireland. We are excited to be able to offer these funds through our unique dealer network where we offer a fast, flexible finance solution to the market. Unlike many other finance companies, we don’t just offer a generic service. We aim to build a long-standing and reliable relationship with our customers and dealers”.
